Lagos State Governor, Mr Babajide Sanwo-Olu, on Monday, signed the necessary documents required by the Securities & Exchange Commission (SEC) to finalise the issuance of Lagos State’s N137.3b 13% 2021/2031 Fixed Rate Bond Series IV Bond Issuance, under the N500b fourth debt issuance programme of the state.
Speaking at the signing ceremony with the issuing houses in attendance, Sanwo-Olu said the conclusion of the process will bring to 377.715b the total value of bond issued from the Lagos State 500b debt issuance programme.
The governor stated that though the plan was to raise up to N125b but closed the book build with bids totalling N137.3b.
” This strong response from the investing community – to our administration’s debut bond issuance – is humbling and is indeed a testament to continued investor confidence in the State’s ability to deliver on its infrastructural and socio-economic developmental objectives; and to meet repayment obligations.
“Notwithstanding the significantly over-subscribed book, and active participation from a wide array of institutional investors – including banks, pension fund administrators, asset managers and corporates, Lagos State has maintained its discipline on size and pricing.
Mindful of the prevailing yield environment, the Series IV Issuance was maintained at N137.3 Billion and cleared at a coupon of 13% per annum. Only bids within the clearing bid were accepted.”
Sanwo-Olu further said In line with the state’s vision to build a Greater Lagos, the proceeds of the bond will be used to finance key infrastructure projects, primarily in roads and healthcare.
He listed the projects to include the Lekki Regional Road, Rehabilitation of Ijeododo road and Rehabilitation of the alternative route to Admiralty Circle Toll Plaza.
“These projects will contribute to a better quality of living for our people, while also creating a more enabling environment for commercial and economic activity. There is no doubt — and we have seen this from previous interventions — that the multiplier social and economic effects will more than justify the cost of the investment.”
Sanwo-Olu applauded the Federal Ministry of Finance, PENCOM and Debt Management Office Nigeria, as well as the Securities & Exchange Commission for their support and collaboration
“We equally thank the investing community for their sustained support of Lagos State and our efforts to improve the social and economic welfare of all residents in Lagos. We do not take for granted your enthusiastic response to our Bond offer.
“We will continue to uphold our commitment to remain the most responsible issuer in the Nigerian capital market,” Sanwo-Olu said.
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